12th Sep 2005 07:03
Laird Group PLC12 September 2005 LAIRD SECURITY SYSTEMS EXPANDS IN GROWING US WINDOW AND DOOR HARDWARE MARKET AND DISPOSES OF ITS UK uPVC WINDOW SYSTEMS BUSINESS The Laird Group PLC ("Laird") announced today the acquisition of BuildersHardware Inc. ("BHI") and the disposal of the business of Permacell Finesse("PFL"). BHI supplies an extensive range of handles and other products for patio doors,screens and windows. In addition, it has designed and recently launched a rangeof innovative window locks which are attracting strong interest in the market.The business is based in central California, USA. BHI has been acquired for a consideration of $10.2 million (£5.5 million) incash including the assumption of debt. In the year to 31 December 2004 BHIreported revenues of $11.9 million (£6.4 million). In the 6 months to June 2005BHI's revenues showed a 24% increase over the same period in 2004. Net assetsacquired as at 31 August 2005 were $5.9 million (£3.2 million). The acquisition of BHI will supplement Laird Security Systems' growing US windowand door hardware business which has been successfully developed over a numberof years. The two businesses have largely complementary products with thepotential to derive synergies by combining sales and purchasing resources. Inaddition, the location of BHI will further enhance Laird Security Systems'presence on the west coast of the US, supplementing its recently opened assemblyfacility in Reno, Nevada. BHI's existing management will remain with thebusiness which will continue to operate from its California base. PFL supplies uPVC profiles to the UK window market from its' premises in Essex,UK. This is a market sector which has recently shown significant consolidationand where Laird does not hold a leading position. PFL has been sold to a subsidiary of Synseal Holdings Limited for a cashconsideration of £10.25 million on a debt free basis. PFL's revenue andoperating profit before interest and tax in the year to December 2004 were £30.6million and £1.4 million respectively, with corresponding figures for the 6months to June 2005 being £14.0 million and £0.1 million. Net assets which arethe subject of the transaction are approximately £12 million. The sale proceedswill be used to reduce Group borrowings and to expand further the Group's corebusinesses. The Group remains liable for future rental payments on a leased siteand expects to make a provision of approximately £5 million in its full year2005 accounts. Commenting on the above, Peter Hill, Chief Executive of Laird, said: "The opportunity to combine BHI's product range and expertise with our existingdoor hardware operation in the US is a very positive development for thebusiness and our customers. By extending this range of products Laird SecuritySystems will further enhance its leading position in the growing US market,while exiting PFL reduces its exposure to the UK window market. These combinedactions demonstrate commitment to our strategy of focusing the group on highergrowth markets." For enquiries: The Laird Group PLC The Maitland Consultancy Peter Hill, Chief Executive Brian Hudspith Jonathan Silver, Finance Director Charlotte Barker Tel: 020 7468 4040 Tel: 020 7379 5151 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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